OPEC Oil Output Survey Hints at Record High Production

OPEC oil output reached the highest monthly level in recent history in July, a Reuters survey found on Friday, as Saudi Arabia and other key members show no sign of wavering in their focus on defending market share instead of prices.

The latest boost from the Organization of the Petroleum Exporting Countries adds to excess supply in the market without the significant rise in demand OPEC hopes will happen in the second half of the year and in 2016.

OPEC supply has risen in July to 32.01 million barrels per day (bpd) from a revised 31.87 million bpd in June, according to the survey, based on shipping data and information from sources at oil companies, OPEC and consultants.

The group has upped production by more than 1.7 million bpd since it decided in November 2014 to defend market share against rising output from rival producers. This month’s deal between world powers and Iran over Tehran’s nuclear work could further add to supplies in 2016.

via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza